Forum Moderators: phranque
So the practical limit is *when* the performance breaks down, according to the opinions of the Webmasters and visitors of the hosted sites. If Webmasters or their visitors notice a perceptible delay in serving pages, they won't like it. At this point, you'll lose many of your clients and have to deal with negative posts on hosting forums (you can respond to them, but they won't go away for a long, long time). Therefore, trying to cut costs by hosting too many sites on each server is the most expensive thing you can do.
You can save money until you put yourself out of business, in other words...
Jim